Chinese stocks listed in the U.S. tumbled as Xi Jinping’s historic third term as President (two terms has been the convention) marked what some believed would be continued pressure on private businesses. In his speech, Xi spoke of regulating the “wealth accumulation mechanism”, which was interpreted as spreading wealth to the masses via government enterprises (vs. private). The Nasdaq Golden Dragon China Index declined as much as 21% before recovering to end the day down -14.4%. With over 50% of the index constituents in the internet industry group, names such as Baidu, Alibaba, and Pinduoduo each declined double digits, with Pinduoduo faring the worst down nearly -25%.

Rishi Sunak is in. The financial markets seem to be ok with the new appointment – for now. Following the news that Mr. Sunak would succeed Ms. Truss as U.K.’s prime minister, the pound rallied slightly, and government bonds rallied significantly. 20-year gilts stood at 3.9% this morning after topping 5% following Truss’ tax cuts pledge. A brimming agenda will meet Mr. Sunak in his first days as prime minister. As a former treasury official, hopes are high that Sunak will be able to steer the country down the right fiscal path. With high inflation stoked by rising energy costs, and a conservative party in dire need of some TLC, Mr. Sunak will undoubtedly face chilly headwinds during his first winter as prime minister.

Junk bond sales globally have fallen 73% YoY, highlighting how investors have been avoiding the high-yield space (even as yields soar), fearing that borrowers could be vulnerable to inflation and an economic downturn. This is a drastic change from last year when the market had multiple deals per day. Now, weeks can go by without a single high-yield bond being offered and that is likely to continue as central banks remain intent on sticking with their aggressive interest rate paths. The decline shows just how quickly the space has taken a turn, as policy makers stick to their hawkish interest-rate strategy.

Pricing probe. Following concerns over rising food prices, Canada’s Competition Bureau is launching “a study of grocery store competition”. Grocery stores were quick to point fingers at inflation and geopolitics to justify high prices, but now the antitrust watchdog said it wants to better understand if lack of competition is also at play. With the industry dominated by so few companies, Canadians have been left with few choices leaving shoppers at the mercy of the retailers. Last month, prices for food purchased from stores were up 11% from a year ago, the fastest annual gain since 1981.

Halloween candy prices are scary this year. Rising costs have sent the price of sugar up 17%. Hershey and Nestle have responded by increasing their prices by 14% and 6.5% respectively. Fortunately for the sector, Halloween spending is back. It is estimated that 180 million Americans participate in Halloween purchasing nearly 600 million pounds and consuming on average 3.4 pounds over the holiday. The confectionary category hit $36.9 billion in 2021 and is projected to reach $44.9 billion by 2026. While candy is getting more expensive, shrinkflation is happening as well, helping with portion control on those who least expect it. Have you seen the size of Kit Kats lately?

General Electric cut its full-year profit target despite strong cash performance in the past quarter, as higher costs in the struggling wind operations add to ongoing challenges with supply chain and labour. The adjustment in guidance underscores the depth of challenges facing the renewable energy business as CEO Larry Culp pushes to turn around the once-mighty manufacturer. Stabilizing this business will be critical for the planned combination and spin-off of GE’s wind turbine, power-equipment and grid businesses in 2024.

General Motors beat earnings estimates on record revenue and affirmed its guidance for the year, showing that rising interest rates have yet to hit sales. GM posted revenue of $41.9 billion thanks to a 24% jump in U.S. vehicles sales for the three months ending Sept. 30, compared to analysts’ expectations of $42 billion in revenue for the quarter. Improved availability of semiconductors and other components helped boost sales of its highest margin vehicles in the US, especially large pickups and SUVs. GM also saw higher profits in China.

Canopy Growth announced a strategy to accelerate its entry into the U.S. cannabis industry and unleash the value of its full U.S. cannabis ecosystem. They will accomplish this by creating a new entity, Canopy USA LLC, to purchase the companies -- Acreage Holdings Inc., Jetty Extracts and Wana Brands -- in which it has options to take control in the event of US legalization. The deal, which is subject to a shareholder vote, will make Canopy profitable and allow it to create a US “house of brands” that can move into new states and use each company’s intellectual property, even without the federal legal change that the deals were contingent on, he said.

Data is showing that China imported record quantities of Russian LNG and steelmaking coal in September, as total purchases of energy products topped $50 billion since the invasion of Ukraine pushed Moscow to expand sales to strategic allies. Coking coal imports from Russia jumped to 2.5 million tons in September, from about 900,000 tons in the same month last year and 1.9 million tons in August. LNG sales rose by a third from a year ago to 819,000 tons, despite a 12% decline in China’s overall purchases. China hasn’t reported imports via pipelines, the main conduit for Russian gas, since the start of the year. Total purchases of Russian energy, including oil products, slowed to $7.5 billion last month from a revised record of $8.4 billion in August, although the figure is well-ahead of last year’s $4.7 billion.